scholarly journals Leaving the Financial Nest: Connecting Young Adults’ Financial Independence to Financial Security

2018 ◽  
Author(s):  
Megan Doherty Bea ◽  
Youngmin Yi
Keyword(s):  
Young Adults ◽  
Transition To Adulthood ◽  
Linear Regression Analysis ◽  
Panel Study ◽  
Early Adulthood ◽  
Financial Security ◽  
Financial Independence ◽  
Transitions To Adulthood ◽  
Familial Support ◽  
Using Data

Objective: This study examines variation in young adults’ transitions to financial independence and the relationship between these transitions and financial security. Background: Individuals on their families for substantial financial support well into early adulthood, even as young adults perceive independence as a key marker of adulthood. Given known variation in transitions to adulthood and unequal exposure to financial precariousness across social groups, the authors ask whether heterogeneity emerges with regards to the timing of financial independence and types of support received, and how differences in pathways to independence may matter for financial security later in young adulthood.Method: The authors estimate group-based trajectory models of four indicators of financial independence for 1,719 young adults from age 18 - 27 using data from the 2005-2015 Panel Study of Income Dynamics (http://psidonline.isr.umich.edu/). These trajectories are then used to estimate predicted levels of financial security at the end of the study period, using logistic and linear regression analysis. Results: Results show that paths to young adults’ financial independence are best characterized by four types of trajectories: Consistently Independent (23%), Quickly Independent (41%), Gradually Independent (23%), and Consistently Supported (13%), with types and duration of support varying substantially across trajectories. The authors find that young adults experiencing trajectories characterized by lower levels of familial support also report higher levels of financial insecurity by the end of the survey. Conclusion: The findings suggest that the patterning and timing of financial independence in the transition to adulthood has implications for financial wellbeing.

scholarly journals Family Instability in Childhood and Criminal Offending During the Transition Into Adulthood

2018 ◽  
Vol 62 (11) ◽  
pp. 1483-1504 ◽  
Author(s):  
Stacey J. Bosick ◽  
Paula Fomby
Keyword(s):  
Juvenile Delinquency ◽  
Family Structure ◽  
Transition To Adulthood ◽  
Family Formation ◽  
Panel Study ◽  
Early Adulthood ◽  
Intact Families ◽  
Child Centered ◽  
Using Data ◽  
Criminal Trajectories

The structure and stability of families have long stood as key predictors of juvenile delinquency. Boys from “broken homes” experience a higher prevalence of juvenile delinquency than those from intact families. Unresolved is whether the consequences of frequently disrupted family contexts endure to shape criminal trajectories into adulthood. Long-term influence may also be indirect. Life-course criminologists credit family formation during the transition to adulthood, and particularly marriage, for redirecting men’s criminal trajectories, but children who experience repeated changes in family structure are more likely to experience precarious starts to their own eventual family formation. Using data from the Panel Study of Income Dynamics and its two child-centered supplemental studies ( N = 1,127), we find that the experience of repeated family structure change is associated with higher rates of arrest and incarceration during early adulthood for White men but not for Black men. However, divergent patterns of own family formation among men in early adulthood do not mediate this association.

The Changing Transitions to Adulthood across Southeast Asia

2013 ◽  
Vol 646 (1) ◽  
pp. 42-68 ◽  
Author(s):  
Quamrun Nahar ◽  
Peter Xenos ◽  
Jeofrey Abalos
Keyword(s):  
Transition To Adulthood ◽  
Economic Transformation ◽  
Educational Institutions ◽  
Asian Countries ◽  
Transitions To Adulthood ◽  
National Differences ◽  
Institutional Influences ◽  
Using Data ◽  
Southeast Asian Countries ◽  
Cross National

Using data from the national censuses of five Southeast Asian countries, this article examines entropy-based measures of the heterogeneity in a set of five markers of the transition to adulthood. Our results suggest that the transition to adulthood is becoming increasingly complex over time in all five countries; complexity is greatest for females, and important cross-national differences in heterogeneity levels and timing persist when underlying patterns of economic transformation are considered. In light of these persistent cross-national differences, we suggest that our census-based analysis should be complemented with case studies of these countries that focus on cultural or institutional influences. Results related to the importance of schooling suggest that cross-national comparisons of educational institutions would be fruitful.

scholarly journals The Effect of EITC Exposure in Childhood on Marriage and Early Childbearing

Demography ◽  
2021 ◽  
Author(s):  
Katherine Michelmore ◽  
Leonard M. Lopoo
Keyword(s):  
Income Tax ◽  
White Women ◽  
Panel Study ◽  
Early Adulthood ◽  
Well Being ◽  
Growing Up ◽  
Income Dynamics ◽  
Earned Income ◽  
Black And White ◽  
Using Data

Abstract Using data from the Panel Study of Income Dynamics, this study analyzes the effect of exposure to the Earned Income Tax Credit (EITC) in childhood on marriage and childbearing in early adulthood. Results suggest that EITC exposure in childhood leads women to delay marriage and first births in early adulthood (ages 16–25), but has no effect on men. A $1,000 increase in EITC exposure in childhood leads to a 2%–3% decline in a woman's likelihood of having a first birth and a comparable decline in her likelihood of marrying by her early 20s. We find similar reductions in fertility among Black and White women, though marriage declines are concentrated among White women. Results are focused on children growing up in the bottom half of the income distribution and those who spent the majority of childhood residing with a single parent—two groups that are the primary beneficiaries of the EITC. These findings have important implications for the well-being of individuals exposed to the EITC in childhood, as well as their future children.

The Varying Effects of Incarceration, Conviction, and Arrest on Wealth Outcomes among Young Adults

2019 ◽  
Vol 67 (4) ◽  
pp. 698-718 ◽  
Author(s):  
Michelle Maroto ◽  
Bryan L Sykes
Keyword(s):  
Young Adults ◽  
Criminal Justice ◽  
Criminal Justice System ◽  
Transition To Adulthood ◽  
Justice System ◽  
Financial Assets ◽  
Net Worth ◽  
Important Time ◽  
Using Data ◽  
Building Life Cycle

Abstract Previous research indicates that incarceration leads to declines in rates of homeownership and net worth, especially among baby boomers, but questions remain as to how other types of criminal justice system contact affect wealth outcomes during the transition to adulthood. Using data from the 1997 National Longitudinal Survey of Youth, we investigate how arrests, convictions, and incarceration influence net worth, financial assets, and debt among young adults. We find that most contact with the criminal justice system limited the ability of young adults to accumulate wealth between the ages of 25 and 30, an especially important time for building life-cycle wealth. Arrests were associated with asset and debt declines of 52–53 percent, and incarceration led to net worth and asset declines of 34 and 76 percent, respectively. These direct effects were also bolstered by the indirect effects of these variables through their relationship with marriage and earnings, especially in the case of incarceration. This study draws attention to how criminal justice system contact affects early adult wealth, thereby setting the stage to influence a host of life course dynamics for individuals and their families.

Exposure to Food Insecurity during Adolescence and Educational Attainment

2020 ◽  
Author(s):  
Colleen Heflin ◽  
Rajeev Darolia ◽  
Sharon Kukla-Acevedo
Keyword(s):  
Educational Attainment ◽  
Food Insecurity ◽  
Transition To Adulthood ◽  
Panel Study ◽  
Behavioral Outcomes ◽  
College Attendance ◽  
Negative Consequences ◽  
Income Dynamics ◽  
Using Data ◽  
Lower Educational Attainment

Abstract Previous research has documented the negative consequences of exposure to food insecurity over the early childhood period in terms of health and cognitive and behavioral outcomes, but less research has explored the consequences of exposure to food insecurity at other points in childhood. We examine the association between food insecurity during adolescence and educational attainment. We begin by exploring a conceptual framework for the potential mechanisms that might lead adolescents who experience food insecurity to have differential educational outcomes. Then, we use descriptive and regression analysis to see whether food insecurity is associated with lower educational attainment using data from the Panel Study of Income Dynamics Transition to Adulthood Survey. We find that exposure to food insecurity during adolescence predicts lower levels of educational attainment by reducing college attendance.

Differences in Bank Account Ownership Among White, Black, and Latino Children and Young Adults

2016 ◽  
Vol 27 (2) ◽  
pp. 212-230 ◽  
Author(s):  
Jinhee Kim ◽  
Jung Eun Kim ◽  
Ui Jeong Moon
Keyword(s):  
Young Adults ◽  
Family Background ◽  
Panel Study ◽  
Black Children ◽  
Bank Account ◽  
White Children ◽  
Racial And Ethnic Differences ◽  
Transition Into Adulthood ◽  
Children And Young Adults ◽  
Using Data

Using data from the Panel Study of Income Dynamics (PSID) Child Development Supplement and Transition into Adulthood, this study compared Whites, Blacks, and Latinos to identify racial and ethnic differences in bank account ownership. Having a bank account as a child was significantly associated with bank account ownership in young adulthood. Black children and young adults lagged in bank account ownership. Parental bank account ownership and family wealth increased the odds of bank account ownership for White children significantly more than for Black children. Financial independence, employment status, and educational attainment of young adults showed greater associations with bank account ownership than family background. Findings call for educational programs and policies to increase opportunities for the bank account ownership of minority youths.

Transitions to Adulthood

2013 ◽  
Vol 646 (1) ◽  
pp. 28-41 ◽  
Author(s):  
Frank F. Furstenberg
Keyword(s):  
Southeast Asia ◽  
Transition To Adulthood ◽  
Early Adulthood ◽  
Asian Countries ◽  
Family Change ◽  
The West ◽  
Transitions To Adulthood ◽  
Adult Transition ◽  
Emerging Patterns ◽  
East And Southeast Asia

This article explores the lessons of family change in the West for emerging patterns of change in East and Southeast Asia, especially for the transition to adulthood. This passage has become more protracted and less predictable in Western nations. There is also a great deal of variation in the patterning of the adult transition in different nations in Europe and the Anglo-speaking nations. I identify some of the reasons for this variation—economic, cultural, and institutional—that account for the varied regimes of early adulthood and speculate how they may impact different Asian countries, owing to historical, cultural, and institutional patterns.

Financial Debt and Mental Health of Young Adults

2021 ◽  
pp. JFCP-18-00048
Author(s):  
Jinhee Kim ◽  
Swarn Chatterjee
Keyword(s):  
Mental Health ◽  
Young Adults ◽  
Regression Analysis ◽  
Transition To Adulthood ◽  
Credit Card ◽  
Fixed Effects ◽  
Multinomial Logistic Regression ◽  
Panel Study ◽  
Student Loan ◽  
Negatively Associated

The purpose of this study is to examine the debt burdens, perceived capabilities, and mental health of young adults. Panel data constructed from the 2009 to 2013 waves of the Panel Study of Income Dynamics (PSID) and its Transition to Adulthood (TA) supplement are used in this study. The multinomial logistic regression analysis findings showed that the amount of revolving debt was negatively associated with young adults’ mental health. On the other hand, perceived abilities in acting responsibly, in solving problems, and in managing money were positively associated with the mental health of young adults. The fixed effects regression analysis results indicate that the amounts of credit card and student loan debt from the previous period were negatively associated with an increase in the mental health continuum scores of young adults over time. A discussion of the implications of this study’s key findings for scholars, policymakers, and practitioners is included.

scholarly journals Will I Stay Married?: Exploring Predictors of Expectations to Divorce in Unmarried Young Adults

2018 ◽  
Vol 8 (2) ◽  
pp. 118-132 ◽  
Author(s):  
Rachel Arocho ◽  
Kelly Purtell
Keyword(s):  
Young Adults ◽  
Transition To Adulthood ◽  
Achievement Motivation ◽  
Young Adulthood ◽  
Panel Study ◽  
Value Theory ◽  
Income Dynamics ◽  
Expectancy Value Theory ◽  
Expectancy Value ◽  
Partnership Status

Expectations that one may eventually divorce may predict behavior in young adulthood and beyond, but studies that have looked at individuals’ assessments of their divorce likelihood have been limited. Guided by the expectancy-value theory of achievement motivation, we tested five categories of potential predictors of divorce expectations in a sample of 1,610 unmarried young adults from the Panel Study of Income Dynamics Transition to Adulthood Study. Predictors were tested separately by gender and partnership status. Results suggested that some predictors mattered more for some groups than others, such as employment for single men or certainty of marriage for partnered women. Consistent with prior research, caregiver divorce was significantly associated with expectations to divorce but was only one of many factors found to predict these expectations. Socioeconomic factors and experiences and expectations of other relationships consistently predicted expectations. Expectations to divorce are multifaceted and complex.

scholarly journals Changes in transition to adulthood of young people in Serbia between 2003 and 2011

Sociologija ◽  
2012 ◽  
Vol 54 (2) ◽  
pp. 227-243 ◽  
Author(s):  
Smiljka Tomanovic
Keyword(s):  
Young People ◽  
Transition To Adulthood ◽  
Financial Independence ◽  
Comparative Analyses ◽  
Transitions To Adulthood ◽  
The Balkans ◽  
Alternative Conceptualization

The paper deals with transition to adulthood of young people in Serbia through analysis of findings of the two surveys from 2003 and 2011. The aims are to explore the changes in pace, as well as in transitional trajectories that could indicate their destandardisation and individualisation. Some of the debatable issues related to the transition to adulthood approach are presented in the framework and discussed further in relation to the results of the analysis in the concluding section. The findings indicate that there exists some acceleration in the pace of transition, mainly due to increased financial independence of young people. The trajectories, however, are still standardised, while transition is postponed and prolonged. The comparative analyses of some features of young people?s transitions to adulthood in the Balkans led to the conclusion that an alternative conceptualization is needed.

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